PROS / There is no minimum deposit or minimum lot size, making OANDA a good choice for small investments.
CONS / The mobile app doesn’t let you create alerts or use charting tools.
VERDICT / OANDA is a forex broker that has low initial costs and doesn’t charge commissions, but it doesn’t offer much in the way of training and doesn’t have the strongest mobile app.
OANDA is a forex broker based in San Francisco, California that provides forex trading services around the globe. OANDA offers trading on commodities, bonds and stock indices in addition to forex. It uses its own fxTrade platform and offers a companion app. The program lacks some of the features we look for but is still an above-average trading platform. OANDA has no commissions and uses the bid/ask spread as a broker markup.
Our reviewers used demo accounts to test each forex broker’s platform. We evaluated them on the platform features and the ease of use. OANDA’s platform makes it easy to set up trade and makes it easy to set up stop-losses and other advanced orders. One disadvantage is you need to add the pairs you want to buy to a watchlist. With this platform, you can’t create multiple watchlists and there are limited options for setting up alerts and ever fewer options for customization. The platform includes more than 50 technical indicators, which can help you plan your forex trading strategies.
In addition to the desktop platform, OANDA also has a mobile app. Our reviewers found the app to be functional, but it lacks some of the tools that the best forex trading apps have. You cannot use charting tools or set up alerts with this app. The most frustrating aspect of this app is that it you cannot add currency pairs to watchlists through the app; you must add them through the desktop platform.
Through OANDA you can trade more than 70 currency pairs, the second highest amount in our review. These include the major pairs and minor pairs as well as exotic currencies, such as the Norwegian Krone, the Turkish Lira and the South African Rand.
OANDA does not charge commissions and stands apart from other forex brokers in that it does not require a minimum deposit and has no minimum trade lot size. You can make trades on as little as one unit of currency. The only cost you incur is from the bid/ask spreads, which is the difference between the buying and selling price. Spreads fluctuate constantly and can change quickly, so the numbers we list may not be up to the minute. In comparing OANDA’s spreads to other brokers', we found them to be very competitive and the best of the brokers that don’t charge commission.
OANDA provides some webinars and investment articles for traders, but the information is not as extensive as other brokers' offerings. You can find video tutorials to train you on the platform, but those are located on YouTube and are not easily accessed through the platform.
OANDA is a forex broker that doesn’t require a minimum deposit and has no minimum lot size. It does not charge commissions, and traders pay on the bid/ask spreads. Its trading platform is missing some important features, but its low costs make it an attractive option for investors looking for less risk.